CHOOSING AMONG ALTERNATIVE DISCRETE INVESTMENT PROJECTS UNDER UNCERTAINTY

Authors
DIXIT A
Citation
A. Dixit, CHOOSING AMONG ALTERNATIVE DISCRETE INVESTMENT PROJECTS UNDER UNCERTAINTY, Economics letters, 41(3), 1993, pp. 265-268
Citations number
5
Categorie Soggetti
Economics
Journal title
Economics letters → ACNP
ISSN journal
01651765
Volume
41
Issue
3
Year of publication
1993
Pages
265 - 268
Database
ISI
SICI code
0165-1765(1993)41:3<265:CAADIP>2.0.ZU;2-X
Abstract
Irreversible choice among mutually exclusive projects under output pri ce uncertainty is considered. Increasing returns are shown to make it optimal to wait for the largest project. Greater uncertainty of the pr ice process makes it optimal to wait for a larger project.